Kenarong – Pertang competitive FEED to be an option
Murphy Oil Corporation (Murphy Oil) and the Malaysian oil company Petronas are considering the option to organize a competitive front end engineering and design (FEED) to develop the Kenarong and Pertang natural gas fields of the Block PM311 in the shallow water of the east coast of the Malaysia peninsula.
In that respect Murphy Oil started to take interests in Malaysia in 1999 from where it currently produces 45% of its net production.
With production sharing contracts (PSCs) in the Blocks K, H, SK309, SK311 and PM311, Murphy Oil has a long standing experience of the operations in Malaysia and maintains a close cooperation with the local company Petronas.
The Kenarong and Pertang natural gas fields lye by 74 meters of water depth in the shallow water of the Block PM311 approximately 150 kilometers northeast Kuala Terengganu on the peninsular Malaysia east coast.
These fields were discovered in 2004 by 3,500 meters of total depth offering a good quality natural gas with low percentage of carbon dioxide content.
– Murphy Oil 75% is the operator
– Petronas 25%
The Kenarong and Pertang natural gas fields were left undeveloped for some years, but the recent evolution of the natural gas consumption in Malaysia with a flattening production motivated Murphy Oil and Petronas to gear up their development including the option to call for competitive FEED in order to save time at the execution phase.
Two offshore platforms for Kenarong and Pertang fields
Because of the respective position of the Kenarong and Pertang fields, the offshore project should include:
– Central processing platform (CPP) to be located above Kenarong
– Wellhead platform to be positioned at Pertang
The two platforms will be connected together and should weight 11,000 tonnes
– 80 million cubic feet per day (cf/d) of gas
– 1,500 barrels per day (b/d) of condensate
The CPP should also support the infrastructures of the living quarter to host 20 crew members.
So far Murphy Oil and Petronas were planning to call for tender the FEED contract to be awarded on first quarter 2014 and to use the FEED conclusions to organize the bidding process for the engineering, procurement and construction (EPC) contract.
But in that case the EPC work has little chance to start before 2015 leading to commercial operations not earlier than 2017.
In proceeding with the competitive FEED Murphy Oil and Petronas may take the risk to increase the costs of the project, but can expect the first production to flow out of Kenarong and Pertang gas fields offshore peninsular Malaysia in 2016.